Important changes to VAT – what you need to know now!
We now require your VAT identification number and your private address. That naturally raises questions, which is why we cover this topic in today’s article. We've summarized the seven most common questions for you. However, if you are not operating as an entrepreneur in the Netherlands or do not have a VAT ID, this article does not apply to you.
Why only us? Other platforms don't ask for this
Our company is based in the Netherlands, which means we must follow Dutch tax law. Those laws determine that you must be fiscally registered as a self-employed entrepreneur in the Netherlands if you earn money independently.
Why only now?
Attention to this issue arose from a lawsuit by a well-known fan-engagement platform before the European Court of Justice, which had wide-reaching consequences for VAT rules. The ruling significantly affects how platforms must handle VAT.
What exactly is changing?
Instead of you sending us an invoice, we apply the principle of self-billing: we issue the invoice on your behalf. You will then receive a detailed VAT invoice from us showing your sales revenue, the deducted commission, and your net proceeds.
What’s the difference for registered Dutch Creators?
The VAT calculation changes for you: it will be calculated only on your net revenue. For example, if your subscription costs 10 euros and you have 10 fans, that's 100 euros in revenue. After deducting our commission of 18%, you receive 82 euros to your account, on which we remit an additional 21% VAT.
Do Dutch Creators earn more now?
Not really. The VAT that is remitted is not intended for your expenses but must be declared and paid in the tax return. It is crucial that you do not use this money for other expenses, as that could lead to issues with the tax authorities.
And retroactively?
Yes, but only to a certain extent. If you provide your VAT ID, we will adjust this retroactively up to 24 January. For months without a provided ID, no corrections can be made.
I don't have a VAT identification number?
As a content creator earning income from your activities, you may be considered an entrepreneur, which can bring certain tax advantages. An experienced accountant can assist you with this.
Complicated? Yes, but you are not alone
These topics are complex, but we are here to support you. If you have any questions, do not hesitate to contact us. We are happy to help!
For German Creators who are active on a platform based in the Netherlands and where the new VAT rules apply, there are a few specific points to note:
- Registration and tax identification number: German Creators who regularly earn income from their activities as content creators must ensure they are registered as an entrepreneur with the tax office. This includes the need to have a tax number or VAT identification number.
- VAT accounting: Even if the platform is headquartered in the Netherlands, German Creators are obliged to calculate and remit German VAT on their income. The platform may apply the self-billing method, meaning it issues invoices on behalf of the Creator.
- Invoicing and documentation: Since the platform issues the invoices itself, it is important that all documents are correct and complete. These invoices must contain the required information under German tax law, such as the Creator's VAT identification number and a detailed breakdown of earnings and VAT paid.
- Collection and remittance of VAT: The platform could remit VAT directly to the tax office, depending on how the platform's arrangements are set up. In other cases, the Creator may need to report and remit the VAT themselves to the tax office.
- Taxation of income: Regardless of VAT, German Creators must also report their income from the platform as part of their overall income for income tax purposes. Earnings must be declared on the income tax return.
- Compliance and advice: Due to the complexity of tax requirements both domestically and for cross-border activities, it is advisable to consult a tax advisor. They can ensure that all tax obligations are correctly fulfilled and provide advice on optimal tax structuring.
It is important for German Creators active on international platforms to be familiar with both tax rules in Germany and those in the operator's country to avoid tax risks and disadvantages.
